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1 TruScan TM Prototype FY 2016 Results February 2017 Jeff Olsen CEO

2 Important Notice and Disclaimer This presentation has been prepared by Boart Longyear Limited, ABN (Boart Longyear or the Company). It contains general information about the Company s activities as at the date of the presentation. It is information given in summary form and does not purport to be complete. The distribution of this presentation in jurisdictions outside Australia may be restricted by law, and you should observe any such restrictions. This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of securities, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, securities in any jurisdiction. Neither this document nor anything in it shall form the basis of any contract or commitment. This presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this presentation based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This presentation includes forward-looking statements within the meaning of securities laws. Any forward-looking statements involve known and unknown risks and uncertainties, many of which are outside the control of the Company and its representatives. Forward-looking statements may also be based on estimates and assumptions with respect to future business decisions, which are subject to change. Any statements, assumptions, opinions or conclusions as to future matters may prove to be incorrect, and actual results, performance or achievement may vary materially from any projections and forward-looking statements. Due care and attention should be undertaken when considering and analysing the financial performance of the Company. All references to dollars are to United States currency unless otherwise stated, and financial results presented are not audited. Footnotes referred to throughout presentation are described on slide 27 2

3 FY 2016 Summary (Results compared to FY 2015, except as otherwise indicated) Safety 1 o Lost time incident rate (LTIR) at % improvement over FY 2015 reflects success at mitigating significant risks o Moderate increase in total case incident rate (TCIR) still among the lowest in the industry at 1.41 o No fatalities; 6 lost time incidents Adjusted EBITDA o Up $32M despite a $93M (13%) drop in revenue o Adjusted COGS down $105M (16%); adjusted SG&A down $10M (8%) Cash from Operating Activities o Used $5M less cash despite revenue decline ($50M used in FY 2016 vs. $55M used in FY 2015) Productivity o 12% improvement in drill meters per shift o 9% improvement in meters per hour o Reduction in non-billable time Business Environment o Gold up 16% as of 23 February 2017 Gold represented 57% of Drilling Services revenue in FY 2016 o Copper up 31% as of 23 February 2017 Copper represented 17% of Drilling Services revenue o Equity raisings by junior miners at strongest levels since

4 Drilling Services Productivity Initiative Update Shift Productivity Drill Rate + 12% + 9% Tracking key metrics daily Results reported and highly visible throughout company Coaching and performance management for underperformers Productivity initiative driving measureable improvements with customers 4

5 Productivity & cost controls are improving results - 13% + 32M + 8% Significant improvement in EBITDA and cash despite revenue decline 5

6 Becoming a data provider, not just a driller Today Future Data acquisition done by third parties at our rigs Assay done off-site Slow, costly and not user-friendly for our customers Core orientation, core logging, survey and assay all done by our crews at the rig Direct data feed into customer databases Instantaneous, low-cost and user-friendly TruCore TM (Core Orientation) Successfully launched in 2015 TruShot TM (Down-hole Survey) Rolling out soon in Australia Status TruProbe TM (Down-hole Geophysics) Field testing and working well TruScan TM (On-site Assay) Field testing and working well 6

7 LF TM 160 and Freedom TM Loader Financial Overview Brendan Ryan CFO

8 Consolidated Results Summary: FY 2016 (US $M) Revenue down $93M, driven primarily by volume and FX Demand relatively stable in underground and production drilling applications Increase in bidding activity Adjusted EBITDA up $32M, driven by cost control and increased productivity Adjusted COGS down $105M; adjusted SG&A down $10M 2 2 Adjusted NPAT improved by $24M No dividend to be paid 2 2 8

9 Year-Over-Year Comparison Statutory Adjusted 2 (US $M except EPS) FY 2016 FY 2015 Change Fav / (Unfav) (US $M) FY 2016 FY 2015 Change Fav / (Unfav) Revenue % Revenue % Gross Margin 86 0 NMF Adjusted Gross Margin % GM as % of Revenue 13% 0% Adj. GM as % of Revenue 14% 10% Operating Margin (61) (199) 69% Adjusted Operating Margin (33) (101) 67% OM as % of Revenue -9% -27% Adj. OM as % of Revenue -5% -14% EBITDA 2 (115) NMF Adjusted EBITDA 32 (0) NMF EBITDA as % of Revenue 0% -16% Adj. EBITDA as % of Revenue 5% 0% NPAT (157) (326) 52% Adjusted NPAT (108) (132) 18% NPAT as % of Revenue -24% -44% Adj. NPAT as % of Revenue -17% -18% EPS (cents) (16.8) (36.0) 53% Tight cost control and productivity initiatives are driving margin improvement 9

10 Consolidated Overview: FY 2016 Volume and price declines offset by operational improvements (US $M) Consolidated Revenue Bridge Consolidated Adjusted EBITDA 2 Bridge 10

11 Debt and Cash Bridges (US $M) Gross Debt Cash Working capital release in 2H 2016 consistent with seasonality of business Total liquidity as of 31 December 2016 was $64M ($5M available under ABL) 11

12 Business Overview Jeff Olsen CEO

13 Drilling Services: FY 2016 Operations Productivity improvements offset lower volumes Key Financials (US $M): FY 2016 FY 2015 Change Fav / (Unfav) Key Performance Indicators FY 2016 FY 2015 Change Fav / (Unfav) Revenue % COGS % SG&A % Average Operating Rigs % Headcount (period-end) 3,011 3,127 4% Note: ~300 employees were reclassified from Products to Drilling Services in 1H EBITDA % EBITDA as % of Revenue 12% 8% Revenue down 15% from FY 2015 (volume driven) FX and price also factors EBITDA up 26% despite significantly lower revenue; driven by improved productivity and lower costs 13

14 Drilling Services: Revenue by Commodity Gold and copper drive bulk of revenue 14

15 Global Products: FY 2016 Operations Headwinds from FX offset by cost control Key Financials (US $M): FY 2016 FY 2015 Change Fav / (Unfav) Key Performance Indicators FY 2016 FY 2015 Change Fav / (Unfav) Revenue % COGS % SG&A % Average Backlog (US $M) % Headcount (period-end) 1,001 1,258 20% Note: ~300 employees were reclassified from Products to Drilling Services in 1H EBITDA % EBITDA as % of Revenue 7% 7% Pro Forma 4 Revenue (US $M) FY 2016 FY 2015 Change Fav / (Unfav) Sales to BLY Drilling Services % Pro Forma Revenue % Revenue down 6% from FY 2015 (FX driven) Price and volume down slightly EBITDA down due to volume decline Strategic additions to sales force 15

16 Update on Capital Structure Review We continue to work with our lenders and advisors to create a sustainable capital structure While the process is incomplete and the outcome is uncertain, we have made significant progress Primary objectives include reducing our debt, securing additional liquidity, and extending maturities on our debt Will likely require existing debt holders to convert all or part of their debt to equity, which will be highly dilutive to existing shareholders Lenders will likely have significant governance rights and control We are committed to expeditiously pursuing the best possible outcomes for all stakeholders will announce any material updates 16

17 Conclusion LR500 Rotary Drill Rig

18 Positive signs in recent commodity trends Long-Term Commodity Trends 5 Recent Commodity Trends 5 (since Jan-16) + 16% + 31% + 116% 18

19 as well as positive movements in mining equities and junior equity raisings + 75% Note: Juniors defined as mining companies with a market cap of less than $500M 19

20 We remain committed to our Strategic Priorities Safety o Continue to be an industry leader Operations o Continue to improve on the productivity gains we have made in the last year Technology o Focused on acquiring data from our drill holes and delivering to customers in a faster, lower-cost and user-friendly format Cash / Debt o Continued improvements in our operating performance combined with better volumes from an improving market to achieve our goal of being cash positive in 2017 o Improve capital structure in a way that balances the interests of all stakeholders 20

21 Questions? 21

22 Appendix

23 Safety & Environment Our goal is to add value with zero harm leading our industry with our employees returning home safely each day and performing our work with minimal impact to our neighbors or the environment. Safety Performance o o o Improvement in lost time incident rate Moderate increase in total case incident rate No fatalities; 6 lost time incidents during the year Proactive Safety Culture o Focused field leadership interactions with field employees and other initiatives covering significant areas of risk Continual Improvement o Focus on significant incident root cause analysis and corrective actions, supported by operations-centric incident reviews Improvement in lost time safety performance in FY 2016 and no fatalities 23

24 Key Performance Indicators by Quarter Quarters ended 2016 Quarters ended 2015 Quarters ended 2014 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Total Company Revenue (US$ millions) EBITDA (US$ millions) (15.3) (12.4) (75.2) (0.7) (25.2) (14.2) (61.9) 12.3 (31.1) (1.9) Adjusted EBITDA (US$ millions) (6.3) (4.9) (9.5) (3.2) Operating Loss (25.5) (5.5) 3.4 (33.2) (90.4) (24.8) (44.6) (39.4) (83.3) (15.7) (56.6) (29.4) (Loss) Profit from Trading Activities (7.7) (0.8) 7.8 (23.2) (10.3) (7.7) (3.6) (24.2) (14.3) (6.2) (4.1) (23.3) Net cash flow s (used in) provided by operating activities (22.5) (50.0) (10.2) (74.9) (6.8) 10.1 (8.3) (6.3) Net Debt (US$ millions) Adjusted SG&A (US$ millions) # of employees 4,337 4,626 4,629 4,611 4,725 5,089 5,151 5,537 5,933 5,972 5,871 5,593 Global Drilling Services Revenue (US$ millions) EBITDA (US$ millions) Average rig utilisation 32% 35% 34% 28% 33% 37% 38% 35% 38% 40% 39% 32% Average # of drill rigs # of employees 3,011 3,307 3,349 3,300 3,127 3,420 3,478 3,833 4,172 4,208 4,130 3,874 Global Products Revenue (US$ millions) EBITDA (US$ millions) Average backlog (US$ millions) # of employees 1, ,258 1,314 1,321 1,338 1,393 1,407 1,382 1,363 24

25 Diversified End-Market Exposure FY 2016 Total Revenue by Type Products & Services FY 2016 Total Revenue by Region Products & Services FY 2016 Drilling Services Revenue by Stage FY 2016 Drilling Services Revenue by Commodity 25

26 Debt Maturity Schedule (US $M) 40 7% Senior Notes (unsecured) Term Loan Tranche B % Senior Notes (secured) 195 ABL 40 Term Loan Tranche A Senior Notes Term Loan ABL 1 If Term Loan Tranche B and 10% Senior Secured Notes have not been refinanced prior to July 2018, ABL maturity accelerates to 2018 (in advance of Term Loan Tranche B and 10% Notes) instead of

27 Footnote Disclosures Footnote 1: Per 200,000 work hours. Footnote 2: Loss from Trading Activities, Adjusted Gross Margin, Adjusted Operating Loss, Adjusted SG&A, Adjusted EBITDA and Adjusted NPAT Loss are non-ifrs measures and are used internally by management to assess the underlying performance of the business and have been derived from the Company s financial results by adding back significant items (i.e., charges relating to recapitalisation, impairments, restructuring, and employee and related costs). In the case of Pro Forma Adjusted EBITDA, additional adjustments are made to account for one-time items. In the case of Adjusted NPAT, additional adjustments are made to account for the tax effect of significant items and other tax write-offs and, in the case of Loss from Trading Activities, adjustments are made to Adjusted Operating Loss to remove other expense/income. Footnote 3: Operating rigs defined as the number of weekly operating rigs generating revenue. Utilisation figures based on operating rigs divided by rigs held in the fleet. Footnote 4: Transactions between segments are carried out at arm s length and are eliminated on consolidation. Footnote 5: Source: Bloomberg. 27